Wade Henderson of http://www.IMMFinancial.com has crafted an article that places the dilemma of the smaller businessperson relative to the plight of the corporate giants that are in financial trouble. Wade indicates that the “Big Players,” as he calls them, have the advantage of turning to the government when things get rough and they need some assistance.
The “little guy,” however, has no one that is eager to help them out considering that there is no major ramifications if they fail. A few jobs and some tax revenue loss. No big deal. But if Citigroup fails, we’re all doomed. So, who’s there for the little guy.
No one.
Banks don’t want to help because they are now completely risk averse. So if a smaller business needs help staying afloat, the primary lending institutions are too busy keeping themselves afloat to worry about Ma and Pa and there 15 person printing company.
But receivables factoring companies are an option for these smaller concerns when the banks that are being bailed put, bail out on the little guy. By factoring receivables, a company can let the assets already on the books go to work for them now. As factoring companies purchase these invoices the company receives an expedited infusion of cash and gets to keep the wheels of small business industry turning.
Small business is responsible for something like 80% of the new jobs created over the last decade. And if the traditional lending institutions are going to ignore the Little guy then the little guys will work around them. Factoring receivables is one way to make a detour around the Big Players.
